Strategies for Building a DGI Portfolio

[Kerim]

Great thread – thanks all! And sorry I’m late to the party.
 
A lot of great points to consider and respond to. In no particular order:
 

• As to living exclusively off the dividends versus selling off a portion of the assets, all I can say is that I hope this is a decision I’ll have to wrestle with one day. I save and invest aggressively, but my monthly expenses are really high (largely due to daughter’s medical condition). So even rosy projections don’t show me being able to live exclusively off dividends, unless circumstances change dramatically. I did a thread on this a long time ago, complete with tables, arguing that a willingness to sell assets allows you to aim at a lower total savings target, and that can free up time and resources for other important things in your life. There is a danger to over-saving!
  
• Incidentally, I’m with fenders about driving the older cars. If you saw my apartment, you’d probably think I’m living paycheck to paycheck. I love the stealth approach to affluence!
  
• Here are my thoughts on equal weightings, with more illustrations! In short, I’ll worry about that much closer to retirement. For now, I’ll buy the best opportunities as they present themselves.
  
• I don’t have a strong opinion as to the appropriate number of stocks in a portfolio. I think we all agree that past some point, the diversification value decreases. But there isn’t much harm there, except for each individual’s ability to manage and track the portfolio. To each their own. For me, I’ve held as many as 30, but I’m in a long, slow process of winnowing that down. As I’ve gained experience, I’m focusing more and more on only the highest-quality companies I can find…
  
• …and waiting for the market to present good entry opportunities into them. I completely agree that your fate in holding a stock is largely baked into the moment of purchase. 
  
• (And with great trepidation, I’ll mention that I have some qualms with the “Chowder Rule.”)
  

 
Thanks again everyone!